There seem to be at least three versions of fraud in question here., and Mr. OTUO does not recognize them, according to his statement. 1) the legal definition of fraud, 2) the "sin of fraud" as somehow on the wt book(s), and 3) the concept of fraud (or not) in some other jurisdiction with which Mr. OTUO might be more familiar with.
This case, and the fall-out, should give pause to the elders if they are tempted to handle cases in a cavalier fashion in the future.